Robinhood, the digital brokerage firm, is stepping up its venture into real-world assets (RWAs). The firm has announced the introduction of a layer-2 blockchain built on Arbitrum, designed for tokenizing stocks. This move will facilitate stock token trading for its user base in the European Union.
The newly launched layer-2 network will support the issuance of over 200 US stock and exchange-traded fund (ETF) tokens. This development aims to provide European investors with access to US assets. Robinhood made this announcement on Monday.
The brokerage firm’s stock tokens will be commission-free and will be accessible for trading round the clock, five days a week. Furthermore, Robinhood announced the initiation of perpetual futures in the EU, offering eligible traders the opportunity to access derivatives with up to three times leverage. These trades will be processed via Bitstamp, the cryptocurrency exchange recently bought by Robinhood for $200 million.
Other exchanges, such as Gemini, have previously extended tokenized shares to European investors. However, Robinhood continues to intensify its crypto push. Recently, it unveiled micro futures contracts for Bitcoin (BTC), XRP (XRP), and Solana (SOL), thus facilitating traders to access derivatives markets with significantly reduced capital requirements.
In addition to these developments, Robinhood has acquired Canadian crypto operator WonderFi for $179 million and is actively advocating for rational tokenization legislation in the United States. It has proposed a national framework for RWAs to the Securities and Exchange Commission, including plans to launch the Real World Asset Exchange, a platform designed for offchain trading with onchain settlement.
